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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the business income base rate and certain small business taxpayers
In Assembly Committee · Ways And Means · Sponsor Fred Thiele
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the business income base rate and certain small business taxpayers
Purpose
Creates the "Small Business Tax Reform Act."
Summary of provisions
Section 1. Cites the "Small Business Tax Reform Act."
Section 2. Amends subparagraph (iv) of paragraph (a) of subdivision 1 of Section 210 of the tax law relating to tax rates of small businesses, including qualified New York manufacturers.
Section 3. Paragraph 39 of subsection c of the tax law is amended relating to the business income exclusions for taxpayers who are a small business with business income and/or farm income.
Section 4. Effective Date
Justification
New York's small businesses employ over half or 3.9 million of the state's private workforce. Small businesses employ 51.1% of New York's non-farm, private-sector workplace. Currently, small businesses make up 99.0 percent of all employers in the state. In New York, small businesses created 154,264 net new jobs in 2012. The biggest gain was in the smallest firm size category of 1-4 employees. This legislation will foster even greater growth as attempts to rebuild our economy continues. It provides that Small businesses that are taxed under the Corporate Franchise Tax to have their tax rate cut from 6.5% to 2.5% by 2018, under a three (3) year phase-in that would reduce the tax rate to 3.25% in 2016, 2.9% in 2017 and 2.5% in 2018 and thereafter. In addition, the maximum income level for such a rate would be increased from $290,000 to $500,000. The income exclusion rate for small businesses and farmers with less than $500,000 of income would be increased from 5% to 20% by 2018, also with a three (3) year phase-in of 10% in 2016, 15% in 2017, and 20% in 2018 and thereafter.
New York State's small businesses play a critical role in generating economic prosperity. The effort poured into them by ordinary citizens across the state reflects the hard work and determination that is indicative of the state's entrepreneurial spirit. This legislation supports these engines of growth and recognizes their incredible contributions to the State of New York by alleviating a portion of the state tax burden on these businesses.
Legislative history
2016: New legislation
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.